La Fortuna resource firmed up (April 18, 2005)

Joint venture partners Metallica Resources (MR-T) and Noranda Chile have intersected significant copper and gold at their El Morro project 80 km east of Vallenar in north-central Chile.

Drilling is highlighted by hole 46, which cut 214 metres grading 0.86% copper and 0.74 gram gold per tonne at 82 metres down hole, directly followed by 160 metres grading 0.65% copper and 0.86 gram gold per tonne.

This hole was drilled near the centre of the resource. Another hole in this area cut 58 metres grading 1.84% copper and 0.92 gram gold per tonne at 136 metres down hole, immediately followed by 306 metres grading 0.67% copper and 0.81 gram gold per tonne.

Six other holes drilled in the same central area cut from 8-86 metres of secondary enrichment grading from 0.72-2.07% copper and 0.22-0.78 gram gold per tonne, followed by 170-467 metres of primary mineralization grading 0.5-0.68% copper and 0.38-0.69 gram gold per tonne.

Five holes were drilled on the periphery of the deposit highlighted by hole 48, which cut 74 metres grading 1.24% copper and 0.37 gram gold at 162 metres down hole, immediately followed by 236 metres grading 0.56% copper and 0.72 gram gold per tonne.

The four other peripheral holes cut 18-96 metres grading 0.4-0.8% copper and 0.09-0.43 gram gold per tonne in the upper enriched zone, followed by 116-310 metres grading 0.31-0.63% copper and 0.31-0.54 gram gold per tonne.

Nine of the holes ended in copper or gold values greater than the average resource grade.

In 2002 Noranda estimated that La Fortuna contained an inferred resource of 465 million tonnes grading 0.61% copper and 0.50 gram gold per tonne at a cutoff of 0.4% copper. This included 103 million tonnes of supergene mineralization grading 0.71% copper and 0.35 gram gold per tonne.

The drill hole density within the central part of the zone is now at about 100-metre spacing.

Assays are still pending for ten holes (23 were drilled). Once all results have been received a new resource estimate will be calculated.

Noranda Chile, a unit of Noranda (NRD-T) is earning a 70% interest in the 236-sq.-km El Morro project from Metallica. In addition Noranda owns 7.3% of the outstanding shares of Metallica.

BHP Minerals, a subsidiary of BHP Billiton (BHP-N) and another former owner retain a net smelter royalty on the El Morro production.

The El Morro property hosts the La Fortuna and El Morro copper-gold porphyry zones. The El Morro deposit is about five km west of La Fortuna.

In 2004 Noranda estimated that the El Morro deposit contained an inferred 45 million tonnes grading 0.5% copper and 0.18 gram gold per tonne.